Disadvantages of creating an LLC Cost: An LLC usually costs more to form and maintain than a sole proprietorship or general partnership. States charge an initial formation fee. Many states also impose ongoing fees, such as annual report and/or franchise tax fees.
Should I start an LLC before making money?
Form the LLC before you make any money or as soon as possible if you already are bringing in any revenue. LLCs are just too cheap and easy to not form one.